RPX & Acacia Get In Bed

There is a fascinating article at seekingalpha.com regarding the RPX and Acacia relationship including this nugget:

“Acacia, whose business model centers around investing in patents through acquisition and partnerships with patent owners, resembles many of the companies that Forbes claimed RPX would ‘slay.’ However, far from feeling threatened or attacked by the RPX business model, Acacia CEO Paul Ryan views RPX’s presence in the market as a strategic benefit and a strong complement to Acacia. ‘It’s a great relationship,’ explained Ryan during a private telephone conversation. ‘They [RPX] are in the business, essentially, of buying IP rights for their members, and we’re obviously in the business of selling IP rights on behalf of ourselves and our partners.’ As a result, according to Ryan, ‘We work with them on a pretty regular basis.'”

The patent monetization business gets more complex and interesting each day.

The article’s conclusion about RPX’s impact on legal fees is also thought-provoking:

“From the point-of-view of RPX’s members, the aggregator provides a similar function. By negotiating on behalf of multiple members for multiple portfolios, fees paid to RPX serve to save the members from the individual license and legal fees. Spread across a large enough multitude of deals, and RPX members can realize an overall cost savings, particularly by removing individual lawyers from the equation. In this respect, RPX’s business is a lot less like monetizing patents, and lot more like monetizing inefficiencies in our legal system.Ultimately, this leads to two ultimate possibilities. First, this places a constraint on the overall “addressable” market if the primary benefit relates to a reduction in legal fees, because law firms will find ways to adapt and re-structure fees in an effort to keep their position at the bargaining table. Second, it means the monster that RPX very well could slay would be monstrous hourly fees for legal services.”

See the article for much more regarding Acacia and RPX: http://seekingalpha.com/article/906021-rpx-pursues-more-license-option-agreements

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Filed under Mass Aggregators, NPE Articles, Patent Trolls, Patents

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